IndiGo hikes allowances to lift pilot morale after mass cancellations
What's the story
IndiGo, India's largest airline, has announced an increase in pilot allowances. The move comes after a series of mass flight cancellations due to poor roster planning. The airline is now hoping to improve pilot morale with these changes. According to Ashim Mittra, Senior Vice President for Flight Operations at IndiGo, the layover allowance for captains will be increased from ₹2,000 to ₹3,000 and that of first officers from ₹1,000 to ₹1,500.
Allowance hike
IndiGo increases 'deadheading' allowances for pilots
Along with the layover allowance, IndiGo has also increased the "deadheading" allowance. This is for times when airline crew members travel as passengers to position themselves for future duty. The allowance has been hiked from ₹3,000 to ₹4,000 for captains and from ₹1,500 to ₹2,000 for first officers.
Regulatory scrutiny
IndiGo's response to recent flight cancellations
IndiGo, which employs around 5,000 pilots according to government data, is facing regulatory scrutiny and a competition probe. This comes after the airline canceled some 4,500 flights earlier this month. The mass cancellations left hundreds of thousands of passengers stranded across India and caused chaos at airports. A committee set up by India's aviation regulator to investigate the cancellations recently submitted its report.
Financial impact
IndiGo's financial outlook amid cancellation-related losses
Moody's Ratings has warned that IndiGo could suffer "significant financial damage" from revenue losses due to flight cancellations, customer refunds, and penalties imposed by the Indian government. The airline's decision to raise some allowances and introduce new ones will come into effect on January 1. This comes after IndiGo executives visited various bases to hold discussions with pilots about these changes.